Become a prepared employer
It's one of the most common mistakes families make when they hire directly, and getting it right protects both you and your caregiver.
The IRS looks at who controls the work. The more you direct when, where, and how the caregiver works, the more clearly they're an employee.
| If you… | Then they're likely… |
|---|---|
| Set their schedule and hours | An employee |
| Direct how tasks are done | An employee |
| Provide the setting and supplies | An employee |
| Hire them for ongoing, regular care | An employee |
| Hire a separate business that sets its own methods, serves many clients, and isn't directed by you | A contractor (rare for in-home care) |
Almost all direct in-home caregiving falls on the employee side. That's why hiring directly usually makes you a household employer.
A short checklist now saves headaches later, and it's the mark of an employer good caregivers want to stay with.
Open the payroll checklist →Almost always an employee if you hire them directly and direct their work. Control is the deciding factor.
Occasional work can still be employment. It's about control and total pay, not just how many hours.
They're the agency's employee, not yours, and not a contractor. The agency handles taxes and payroll.
This is general information, not tax or legal advice. Classification can be nuanced, when in doubt, ask a payroll service or a tax professional, or see IRS guidance on household employees (Publication 926).